Unpaid electricity bills owed by the national government and the counties reached 7.35 billion shillings at the end of June 2026, up 9.5% year on year, according to Kenya Power's annual accounts reported on Monday, 12 October.
These arrears accounted for 17.7% of the 41.5 billion shillings in gross receivables from postpaid customers. They stood at 6.71 billion a year earlier and at 2.72 billion in 2022, an increase of roughly 170% over four years.
Kenya Power normally requires payment within 21 days and may negotiate a payment schedule, initiate debt recovery or interrupt supply. Applying these measures is more difficult when the debtors are hospitals or other essential public services.
The company raised its provisions for impairment on electricity receivables to 14.89 billion shillings, from 13.33 billion a year earlier. The accounts also include a separate public debt of 35.35 billion shillings, linked to recurring losses from the rural electrification programme.
Rising arrears tie up resources the distributor needs to buy electricity, maintain the network and finance its investments. The state holds 50.1% of Kenya Power, with the remainder owned by private investors.
The group nonetheless posted a net profit of 24.99 billion shillings for the 2025-2026 financial year, up 2.13%. Sales rose 12.05% to 12,777 gigawatt-hours, and electricity revenue reached 238.24 billion shillings, supported by 411,710 new customers and better network efficiency.